{"id":63798,"date":"2023-03-24T17:52:35","date_gmt":"2023-03-25T00:52:35","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=63798"},"modified":"2023-03-26T07:29:21","modified_gmt":"2023-03-26T14:29:21","slug":"emergency-exit-looms-market-teeters-at-oversolds-edge-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2023\/03\/24\/emergency-exit-looms-market-teeters-at-oversolds-edge-the-market-breadth\/","title":{"rendered":"Emergency Exit Looms As Market Teases Oversold Conditions – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary:<\/strong><\/h2>\n\n\n\n

The Federal Reserve was an anti-climactic headliner last week. The Fed proceeded with a 25 basis points rate hike couched in words that suggested that inflation remained the Fed’s biggest concern<\/a>. In the Q&A portion of the press conference<\/a>, Chair Jerome Powell essentially downgraded the Panic of 2023 to the Speed Bump of 2023: “These are not weaknesses that are at all broadly through the banking system. This was a bank that was an outlier in terms of both its percentage of uninsured deposits and in terms of its holdings of duration risk.” Powell even dismissed the notion that commercial real estate loans will be the next domino to fall in the banking system: “we’re well-aware of the concentrations people have in commercial real estate, I really don’t think it’s comparable to this. The banking system is strong, it is sound, it is resilient, it’s well-capitalized…” Post-Fed sellers had different thoughts and looked toward the emergency exit while the market teased oversold conditions.<\/p>\n\n\n\n

The stock market went from giddy buying in anticipation of Powell’s reassurances to selling in disappointment. Tech stocks saved the week from going into the red despite a 1-day drop into oversold trading conditions. Financials faced renewed downward pressure. The divergent market means that bulls and bears can create different but good enough narratives of the trading action. Who knows when a true resolution will come, but the stakes will be exceptionally high when banks start reporting earnings in a few weeks! <\/p>\n\n\n

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Federal Reserve Chair Jerome Powell: it’s NOT the Panic of 2023, it’s the Speed Bump of 2023.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n